New or established? The property investment question after the budget
Should property investors buy new or established homes under the proposed Budget changes? More buyers are now asking that question as negative gearing rules favour newly built properties.
New modelling from Momentum Wealth suggests tax benefits alone may not determine the better long-term investment outcome. In a comparison based on a $900,000 purchase, established properties still came out ahead over longer holding periods when stronger capital growth was factored in.
The research highlights how many investors are now weighing up more than just tax settings. Location, land value, rental demand, resale appeal and long-term growth potential are all becoming increasingly important considerations.
Momentum Wealth also warned that some outer new-build corridors could eventually face rental oversupply, while established suburbs may continue to benefit from tighter supply conditions.
As lending settings and property policies continue to evolve, property investors are paying closer attention to long-term strategy, finance structure and cash flow resilience across the Sydney property and broader property market.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.
